Statement of Comprehensive Income

Employee benefits

This primarily relates to an increase in leave expenses resulting from the cumulative impact of changes to discount factors over the last two years and higher separation and redundancy costs due to minor organisational changes during the year.

Supplier expenses

This relates to lower supplier expenses due to the implementation of AASB 16 Leases from 1 July 2019. Accordingly there is a similar increase in depreciation expense and financing costs detailed below. The budget estimates were updated to reflect this standard in the subsequent budget rounds.

Depreciation and amortisation

This relates to higher depreciation expense on right-of-use assets due to the implementation of AASB 16 Leases from 1 July 2019. The budget estimates were updated to reflect this standard in the subsequent budget rounds.

Finance costs

This relates to interest expense on right-of-use assets due to the implementation of AASB 16 Leases from 1 July 2019. The budget estimates were updated to reflect this standard in the subsequent budget rounds.

Write-down and impairment of assets

This relates to the derecognition of assets due the shutdown of AMSA's differential global positioning system (DGPS) service and the write-down of computer software under development.

Revenue from contracts with customers

This relates to a difference in the classification of items between the financial statements and the PBS, including $11 million for contributions from states and territories and $5 million for other revenue. The residual variance of $1 million relates to lower marine services revenue and the deferral of additional revenue due to the implementation of AASB 15 Revenue from Contracts with Customers from 1 July 2019.

Reversal of provision for pollution incidents

This relates to the unused amount of the provision for pollution incidents recognised in the prior year as the actual costs of the clean-up incurred by AMSA were lower than expected.

Contributions from states and territories

This relates to a difference in the classification of items between the financial statements and the PBS for contributions from states and territories. The actual amount received was in line with budget expectations.

Other revenue

This relates to a difference in the classification of items between the financial statements and PBS for other revenue. The actual amount received was in line with budget expectations.

Statement of Financial Position

Non-financial assets

This relates to the recognition of $126 million of right-of-use assets due to the implementation of AASB 16 Leases from 1 July 2019, with the budget estimates updated to reflect this standard in subsequent budget rounds. This is offset by a residual variance of $28 million which relates to the cumulative impact of the write-down of DGPS assets and computer software under development, the deferral of expenditure on computer software to future years and the impact of revaluation decrements.

Supplier payables

This relates to lower supplier payables of $8 million at the end of the year and the transfer of operating lease rentals of $7 million to retained earnings on transition to AASB 16 Leases on 1 July 2019.

Lease liabilities

This relates to the recognition of an additional $127 million of lease liabilities due to the implementation of AASB 16 Leases from 1 July 2019, with the budget estimates updated to reflect this standard in subsequent budget rounds.

Other provisions

This relates to an increase in the estimated costs for lead paint removal and the decommissioning and restoration of sites, including sites relating to the shutdown of the DGPS service. The provision for pollution incidents was not recognised in the budget estimates.

Statement of Changes in Equity

Retained earnings

This relates to the operating loss of $21 million in 2018-19 as a result of the recognition of a provision for the clean-up of ship-sourced pollution, which is offset by an adjustment of $6 million to retained earnings on transition to AASB 15 Revenue from Contracts with Customers and AASB 16 Leases on 1 July 2019.

Cash Flow Statement

Sale of goods and rendering of services

This relates to a difference in the classification of items between the financial statements and the PBS, including $11 million for contributions from states and territories, $13 million for net GST receivable and $5 million for other revenue. The actual cash received is in line with budget expectations.

Other cash received

This primarily relates to the difference in classification of contributions from states and territories and other revenues, which are budgeted for under sale of goods and rendering of services. The residual variance is in line with budget expectations.

Purchase of property, plant, equipment and intangibles

This primarily relates to the deferral of expenditure on software development to future years.

Principal payments of lease liabilities

This relates to the recognition of lease payments due to the implementation of AASB 16 Leases from 1 July 2019, with the budget estimates updated to reflect this standard in subsequent budget rounds.